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India's Tata Nano: Changing The Rules of How to Produce Inexpensive Cars
India's Tata Nano is not even for sale yet, but the $2,500 car is already changing the rules on how to develop low-cost vehicles.
When the Tata Nano hit the Geneva auto show this year, the buzz was skeptical. People were predicting that it would be nothing more than a shell on wheels. Not so. The vehicle proved significant enough to give automakers pause for thought.
It looks like Toyota, General Motors, Fiat, Suzuki, Renault and Nissan have jumped on the bandwagon to develop super-low-cost vehicles.
It's what the public wants.
A.T. Kearney consultancy predicts that the global market for vehicles priced below $5,000 will grow to 15.7 million units annually by 2020 from 1.9 million this year, forecasts.
Tata Motors says that it will initially produce 250,000 units a year. However, it is alerting its suppliers to prepare for an eventual 1 million units annually.
How did Tata do it? Their approach is novel and that's why manufacturers are studying the company's methodology.
Tata's focus was on lowering the weight and the cost of parts and production. (But, considering that they are producing it in India, where the cost of labor is cheaper, this was not such a big factor.)
To keep the weight low (580kg) they lightened the engine to two cylinders vs. three to four, they installed only one windshield wiper and they mounted 12-inch tires and wheels that use three lug nuts instead of four or five.
As far as amenities go, keeping it simple means no radio, power steering, power windows or air conditioning. The instrument panel only has the basics-speedometer, odometer and fuel gauge. Oh, and there's no glove box either.
But then again, Tata isn't coming here anytime soon... unless they find a way to pass US emission and safety standards. And that's gonna' add some pounds and some dollars to this lightweight.
It will be interesting to see what the other manufacturers come up with.
(sourced from Automotive News Europe April 14, 2008)
When the Tata Nano hit the Geneva auto show this year, the buzz was skeptical. People were predicting that it would be nothing more than a shell on wheels. Not so. The vehicle proved significant enough to give automakers pause for thought.
It looks like Toyota, General Motors, Fiat, Suzuki, Renault and Nissan have jumped on the bandwagon to develop super-low-cost vehicles.
It's what the public wants.
A.T. Kearney consultancy predicts that the global market for vehicles priced below $5,000 will grow to 15.7 million units annually by 2020 from 1.9 million this year, forecasts.
Tata Motors says that it will initially produce 250,000 units a year. However, it is alerting its suppliers to prepare for an eventual 1 million units annually.
How did Tata do it? Their approach is novel and that's why manufacturers are studying the company's methodology.
Tata's focus was on lowering the weight and the cost of parts and production. (But, considering that they are producing it in India, where the cost of labor is cheaper, this was not such a big factor.)
To keep the weight low (580kg) they lightened the engine to two cylinders vs. three to four, they installed only one windshield wiper and they mounted 12-inch tires and wheels that use three lug nuts instead of four or five.
As far as amenities go, keeping it simple means no radio, power steering, power windows or air conditioning. The instrument panel only has the basics-speedometer, odometer and fuel gauge. Oh, and there's no glove box either.
But then again, Tata isn't coming here anytime soon... unless they find a way to pass US emission and safety standards. And that's gonna' add some pounds and some dollars to this lightweight.
It will be interesting to see what the other manufacturers come up with.
(sourced from Automotive News Europe April 14, 2008)
Apr 17, 2008 7:34 am
Categories: What Women Want in a Car | Car Design and Car Shows | Rants and Raves
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